Through the dedicated work performed by our employees who actively manage, improve and develop our properties, and also ensure we have an optimal portfolio, we create long-term value for both shareholders and customers.
Our activity areas Property Management, Transaction & Analysis, and Development work close together to ensure that we have high quality properties in locations where the demand for premises is strong. This synergy between our activity areas is crucial if we are to achieve an attractive total return for the property portfolio and ultimately a good return for our shareholders.
Our aim is to actively manage an optimal property portfolio in terms of both type of properties and their geographic location. We grew the organisation by hiring skilled managers and leasing personnel with strong local networks. This has made it possible for us to form close ties with our tenants, where we are sensitive to their needs and maintain a continual dialogue. An optimal property portfolio has a high level of quality, meets the requirements of existing and potential customers and can be managed efficiently. There are also rising rent levels and value growth in the portfolio. An important component of these efforts is Kungsleden's cluster strategy.
Develop and improve
Important components of long-term value creation include changing the intended use of a property or its floor plan, developing undeveloped land and building rights and, in collaboration with other stakeholders and municipalities, developing areas where we own many properties.
Expand and optimise
The Property Investments team is continually working to analyse, optimise and streamline the property portfolio in line with our strategy. By divesting non-strategic properties and acquiring strategic ones in our prioritised areas and property categories, we create a high quality portfolio that generates an attractive long-term total return for our shareholders.
Strategic focus areas
Raise quality and lower the risks
- Acquire strategic properties that are high quality and low risk. Primarily offices, but also industrial/warehouse, retail, and if appropriate, hotels
- Concentrate holdings to metropolitan regions and areas where growth and demand is high. Reduce the number of municipalities where we are present
- Divest non-strategic properties that are not located in our selected areas. These are properties with high risk, low quality or that are less management intensive.
Sharper offering with properties in clusters
- Collect properties in selected, attractive areas with high accessibility
- Create an area with the right profile in terms of a wide range of services, high accessibility and flexible solutions for premises such that we attract and retain tenant
- Actively contribute to development of both the area and its profile
- Strive for long-term, close relationships with tenants. Fortify local organisation at established clusters
- Maximise rent level via renegotiations and new leasing
- Attract tenants who have a good credit rating and earnings capacity
- Vacant premises must always meet Kungsleden’s minimum standard – Kungsleden’s Ten Commandments
Increase property value
- Identify properties with development potential or unutilised land and building rights.
- Analyse and adapt the range of usage at properties or convert for different use
- Establish and develop contacts with decision-makers
Secure financing with lower risk
- Minimise average borrowing cost by acquiring new loans, refinancing old loans and restructuring interest rate swaps
- Lengthen the average maturity of loans and interest rate hedges
- Strive to improve interest coverage ratio and a lower LTV
Higher visibility of, and confidence in, the new Kungsleden
- Re-positioning, from high transaction volume to a long-term commercial property owner
- Re-positioning of the brand to reflect a professional, personal, innovative and competitive company
- Promote the advantages associated with our main concept – clusters
- Streamline communications based on channels and target groups
Efficiency and best practice in everything we do
- Kungsleden’s Flow– twelve core processes to clarify and strengthen the organisation’s structure, culture and processes
- Package processes and templates as tools for performing everyday tasks
- Focus on profitable transactions